Tag Archives: What happened

Why Square Stock Jumped and Fell Off Today

Shares of fintech stock Square (NYSE:SQ) were up as much as 2.7% in trading on Tuesday after the company announced a big integration between the Square App and Cash App. Shares are down 0.2% with a few minutes left in trading, although that was largely driven by the market overall falling from breakeven at the start of trading to just under 1% lower near the end of trading.

So what

The announcement was that Square sellers will now be able to accept Cash App Pay both online and at their terminals. This opens up a new payment option for businesses and allows customers to access funds in their Cash App account.

Person using Cash App to pay on Square reader. g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/643086/cash-app-pay.png&w=1000&op=resize 1000w, g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/643086/cash-app-pay.png&w=2000&op=resize 2000w”/>

Image source: Square.

While adding a payment method may be a small move, it’s the underlying fees where Square will see the biggest impact. A majority of the approximate 2.9% fee that it charges sellers to perform credit or debit card transactions is paid to banks and credit card companies like Visa and Mastercard. Since the Cash App to Square integration doesn’t use those networks it’s Square that will keep the entire fee.

Now what

The end goal for Square has long been a likely integration between the consumer Cash App and the business-focused Square App. This announcement does just that and it could be the start of Square’s disruption of the long engrained credit card companies. I’m very bullish on this announcement and Square’s ecosystem in general, and think the small bounce today should have been much bigger, even if investors could have seen the move coming a mile away.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Why Palo Alto Networks Stock Surged Today

Shares ofPalo Alto Networks (NYSE:PANW) jumped 19% on Tuesday after the cybersecurity specialist reported its fiscal fourth-quarter growth metrics.

So what

Palo Alto Networks’ revenue rose 28% year over year to $1.2 billion. Increasingly expensive ransomware attacks are underscoring the vital need for effective cybersecurity solutions. Palo Alto Networks, in turn, experienced “notable strength in large customer transactions,” according to CEO Nikesh Arora, as corporations ramped up their cybersecurity spending.

“What these attacks are highlighting is the constant shortcomings of enterprises and of government infrastructure, continually spurring demand and consolidation as companies revalue their cybersecurity posture,” Arora said during a conference call with analysts.

A digital padlock. g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/640575/cybersecurity-gettyimages-827302654.jpg&w=1000&op=resize 1000w, g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/640575/cybersecurity-gettyimages-827302654.jpg&w=2000&op=resize 2000w”/>

Companies are turning to Palo Alto Networks for protection against cyberattacks. Image source: Getty Images.

Still, Palo Alto Networks remains unprofitable on a generally accepted accounting principles (GAAP) basis. However, its adjusted net income increased 12% to $161.9 million, or $1.60per share. That was above Wall Street’s estimates for adjusted per-share earnings of $1.44.

Now what

Looking ahead, management expects revenue to grow as much as 25% to $5.3 billion in fiscal 2022. The company also expects to generate adjusted earnings per share of $7.15 to $7.25.

Better still, with an anticipated full-year adjusted free cash flow margin of greater than 30%, Palo Alto Networks plans to return more capital to its shareholders via an upsized $1 billion stock buyback program.

“We are pleased to deliver strength across all the key total shareholder return drivers — top line, operating margin, and free cash flow conversion,” CFO Dipak Golechha said. “We look forward to updating investors on our long-term goals at our upcoming analyst day on Sept. 13.”

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Why Astra Stock Rocketed a Lucky 7.77% Today

Global launch services provider Spaceflight Inc., a division of Japanese industrial giantMitsui & Co., had good news for space fans today: Its SXRS-5 flight, which launched as part of SpaceX’s Transporter-2 small satellite (SmallSat) express launch back on June 30, has been declared a “100% mission success.”

And while Spaceflight Inc. may not be a publicly traded company, with a stock price that would benefit from this news, start-up defense contractor Astra Space (NASDAQ:ASTR)is, and and its stock price just did — benefit.

Spaceflight Inc.'s family of Sherpa OTV space tugs.g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/640573/spaceflight-incs-family-of-sherpa-otv-space-tugs.png&w=1000&op=resize 1000w, g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/640573/spaceflight-incs-family-of-sherpa-otv-space-tugs.png&w=2000&op=resize 2000w”/>

Meet Spaceflight Inc.’s family of Sherpa space tugs. Image source: Spaceflight Inc.

So what

Other than the fact that they’re both space companies, what does Astra Space have to do with Spaceflight, you ask?

Well, simply this: The two Spaceflight spaceships that made up the SXRS-5 flight were both “orbital transport vehicles” (OTVs) — small rocket ships that function as space tugs that can carry a cargo of satellites into their proper orbits after launch or even carry those satellites on missions outside Earth orbit.

One of Spaceflight’s two OTVs was a Sherpa-FX tug that is designed to move as many as 14 other satellites at a time. The other was Spaceflight’s new Sherpa-LTE craft, a tug powered by electric propulsion from Apollo Fusion — and Astra Space just happens to own Apollo Fusion.

Now what

So now you see the connection.

Spaceflight had previously hired Apollo Fusion to build an electric spacecraft engine that would give its Sherpa-LTE spacecraft the ability to carry payloads to very high Earth orbits and even beyond Earth on interplanetary missions. In a prescient move, Astra bought Apollo Fusion in July 2021 before the company had even proven the thruster would work on an operational mission. And now, for the first time ever, it has done just that!

And that’s why, as of 3:37 p.m. EDT Tuesday afternoon, Astra Space stock is flying a triple-lucky 7.77% higher.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Why This $3 Energy Stock Soared Today

Shares of Orbital Energy Group (NASDAQ:OEG) are soaring Wednesday, trading up 11% as of 2 p.m. EDT. Funnily enough, an analyst reduced its price target on the energy services stock this morning, but investors seem to have found something to like nonetheless.

So what

All eyes were on Orbital Energy’s second-quarter earnings release as investors hoped the company will provide some guidance about its path to profitability, especially after it won a big contract in July. Orbital Energy operates a group of subsidiaries, including:

Orbital Power Services Orbital Solar Services Orbital Telecom Services, and Orbital Gas Systems.

The first three combined accounted for 70% of the company’s revenue in Q2. As expected, total revenue increased 110% year over year to $16.3 million in Q2, thanks to contribution from private telecommunications services company Gibson Technical Services, which was acquired in April. More notably, Orbital Energy’s backlog value rose to $294.9 million. For perspective, the company ended 2020 with a backlog value of only $40.4 million.

What wasn’t expected, though, was a wider loss despite a growing top line.

Workers installing solar panels.g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/639860/workers-inspecting-solar-panels-with-wind-turbines-in-the-background.jpg&w=1000&op=resize 1000w, g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/639860/workers-inspecting-solar-panels-with-wind-turbines-in-the-background.jpg&w=2000&op=resize 2000w”/>

Image source: Getty Images.

Orbital Energy’s operating loss shot up to $18.3 million from $7.2 million in the year-ago quarter for two reasons: a sharp dip in revenue from Orbital Solar Services, and significantly higher expenses incurred on equipment purchases and hiring for Orbital Power Services.

To be fair, lower revenue from the company’s solar subsidiary is broadly in line with what most solar companies are facing. The solar industry is facing a crunch in supply of critical material, including steel, aluminum, polysilicon, and semiconductor chips. With prices of raw material like steel and aluminum also touching multi-year highs, solar companies have had to postpone projects and delay deliveries in recent months. That was bound to hit Orbital Solar Services, which provides engineering, procurement, and construction services to the solar industry.

Earlier in the year, B. Riley Securities upgraded its rating on Orbital Energy stock to buy with a price target of $12 a share, as it believed Orbital Solar Services was emerging as a “market leader in solar farm construction.” B. Riley’s views have softened since, and this morning, it reduced its target price to $6 per share while retaining a buy rating.

Now what

Orbital Energy shares were trading below $3 a share this morning, which means B. Riley still expects the stock to double. That, coupled with management’s expectations of stronger revenue growth in the second half of 2021 even as spending on energy and telecommunications infrastructure is about to take off under the Biden administration, drove the stock higher today.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Why NRx Pharmaceuticals Stock Jumped 11.8% Today

Shares of NRx Pharmaceuticals (NASDAQ:NRXP) jumped 11.8% as of the market close on Wednesday. The big gain came after the company announced positive safety findings from a late-stage study evaluating its drug Zyesami in combination with Gilead Sciences’Veklury in treating hospitalized patients with acute respiratory failure due to COVID-19.

So what

NRx didn’t provide details from the late-stage study of Zyesami and Veklury. However, the company stated that the study’s Data Safety Monitoring Board has identified no new safety issues and is recommending moving forward with enrollment in the trial.

Gloved hand between fallen wood dominoes spelling "COVID-19" and standing wood dominoes.g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/639868/covid-19-coronavirus-wood-blocks.jpg&w=1000&op=resize 1000w, g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/639868/covid-19-coronavirus-wood-blocks.jpg&w=2000&op=resize 2000w”/>

Image source: Getty Images.

That was enough for investors to drive the biotech stock higher today. NRx reported results from a phase 2b/3 study in July that found that Zyesami helped prevent cytokine storms in COVID-19 patients. Cytokine storms occur when the body produces too many cytokine proteins, which can result in serious organ damage.

Now what

Although the update from NRx was good news, the big milestone that investors are waiting for is U.S. Emergency Use Authorization (EUA) for Zyesami. NRx submitted its EUA filing on May 31, 2021.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.